If you can't fight them, join them?

I have issued a new directive to my office. All must use Facebook to their utmost advantage. And now two ways about it....

That may have been one of the weirdest and unconventional directive I have ever given to my staff. I told my partner a day before and as she is more of a real world person than a social media user, she did asked whether it can give us any mileage at all. I discussed with her the reach of social media with Facebook as there are between 3.5 to 4 Million of Facebook users in Malaysia alone (depending on which report to believe). I also told her of various approaches by potential clients which happen to me as I am known as a lawyer everywhere and a blogger only in certain circles. Some do approach me for free legal advice and second opinion but some do approach me to do real work in the real world. I don't mind any of the inquiries which did not bear any fruits as you may never know when you will get your clients from the next time.

I once was also skeptical of Facebook that I shun adding anyone I never met in real life there as I believe that I want to keep it private. Contradictorily, I had created a Facebook fan page of my legal firm's as early as 2007 as I was moving office and I want to tell most my friends of the new location of my office. I changed name in 2009 and that the tools in Facebook were unresponsive to me (or I am too dumb) in trying to migrate my fans from the old firm's fan page to the new one. It was in hibernation until an idea struck me, thanks to observing other big companies, locally and in other countries, utilising social media to its utmost advantage.

I am going to launch my legal firm's Facebook fan page this coming 1st of February but you can see the old one through this link : Khairul, Suhaila & Hazlina's Facebook fan page .

Join us and tell me of any other suggestions which can help us as much as it can help you. And just in case you want to see how my staff look like, here's a sneak preview (until a better picture is posted)

40 Questions You Should Ask Your Lawyers...

As I have been harping about it for quite sometimes to anyone I meet and to all the media I can get my hands on such as Twitter (twitter.com/kruel74) and Facebook (My profile), I am currently writing a book entitled 40 Questions You Should Ask Your Lawyers When Buying a Property In Malaysia. The book is written from a layman point of view and I am trying to explain how one should approached one's lawyer when buying a property. These are the inside information but whether you know it or not, most lawyers will know it and they usually selectively share these trade secrets.

This is not a tell-all book but it is to help one to use lawyers properly and understand them on how intricate is the law business is. Some say being a lawyer is easy as all you need is the gift of the gab. That is just one component of a business which is wrought with so many labels that people throws at. I did try to explain in the book that our profession is a sunset business. It will be smaller and smaller as people and government gets smarter and technology becomes easier to use. Why pay a lawyer when you can do everything yourself?

However, before that day comes, lawyers will always be a component which is to be the ultimate middle man between you and all those red tape which are always there. And I will start with explaining how to buy a house first, then maybe I'll go down less trodden roads like civil disputes and criminal offenses.

Here is the rough draft of my book cover which might change later as the designer is still at it. I actually love it and it managed to capture all that I want it to be... (but this cover still has grammatical error and not the final one)

Free Moving Cost : No more easy financing?

I bought my current home without paying anything at all except the RM500 which I booked it and I actually got that back when the bank release the whole sum. The loan also pay the legal fees which actually went back to my legal firm and I even managed to buy another property using the same tactic. All these happens circa 2003 - 2004, my early days of marriage. I actually handled the money and arrange all the legal stuff while my wife decided on the house. I even got the owner, who is a Dato' to give us a personal tour (twice!) for us to see the house before it was completed. He really knows personal touch is the best way to do business. The peak of this type of loan was in 2005.

Anyway, as the world turns and Malaysia become too lax in the 100% loan type of financing, Bank Negara decided to only allow Free Moving Cost or the payment of legal fees by the banks but they can only finance 90% of their housing loans. Even if they say they are giving 95%, that 5% is for them to pay for your legal fees (which are usually capped at 3% of the loan sum) and your Mortgage Rate Term Assurance (MRTA) which is the insurance to protect the bank if anything happens to you.

That last only until last year. Do you know that since 01.01.2010, there will be no more 100% financing or 95% financing with legal fees and MRTA being paid by the bank or 90% loan with legal fees paid for? Bank Negara had asked all banks to stop it and you have to bear everything yourself.

Of course, the housing developers are smarter and those which have deep pockets are offering to help you pay part of the 10% of your purchase price. Some offer 10 + 90. Some even offer 5 + 95. No, those are not the lesson kids learn in school but the type of properties where you pay only 10% or 5% and the pay the balance ONLY WHEN THE PROPERTIES ARE COMPLETED. Even better than the bank's offer right? But, if you buy a property from another individual person, which does not allow for such arrangement, you will still have to fork 10% of the purchase price for down payment before you find a housing loan to pay the 90%.

So, for now, the best properties to buy seem to be a property build fresh by a housing developer who gives you the best deal in town. As for loans, my advice is to get the bank officer to quote you before you commit yourself. Our term for it is 'shopping for housing loans'. Everyone does it nowadays...

Property investment : One expensive property or a few smaller one?

I have actually been in the property investment market for a few years even since I can afford one. I started with no money down and I managed to get two of that type of housing where they gave out 100% housing loans during the height of 100% loan circa 2003 - 2007. Then they only pay your legal fees with your insurance and now, starting in 2010, you have to pay all your cost yourself. Shows that we may see a bit of a slowdown in property sector huh?

Don't worry. As much as property sector will slow down, people will still buy property. What will separate the good and the mediocre type of properties are the mantra of real estate : Location, location, location. Now, you have to choose really wisely. No more impulse buying (which were what my property purchases have been in the past)

So, as I have liquidated all my smaller size properties and refinance my house, which left me with a sum to be reinvested, the dilemma for me will be whether I should pool all these liquidated asset profits/returns and invest them into one expensive property or a few of the medium size/priced properties?

There are pros and cons of either option. Maintaining one property will be easier and I will be left with some cash for other type of investments. One loan and one bank. A few properties will allow me to spread the risk but a few loans and a few banks to deal with.

Am more on the first option but is still looking.

One of the option. 2% down until completion...

Happy New Year and Happy New Decade

This one is a bit confusing. Some say we will only enter the new decade next year but didn't we celebrate New Year Eve of 2000 as the new decade and this makes 2010 as the new decade too right?

Whatever it is, it was the celebration for a new year and I had fun though I celebrated it in a hotel room with just my wife.

I did my resolution post but I think I want to add another one which is to look for a new investment property and to invest in more things than I have done the last decade.

Gold maybe?

Anyway, have a great year ahead...and er....decade?